<p><?tk 4?>Cyclodextrins (CDs) are cyclic oligosaccharides that have gained extensive attention over the past few decades due to their unique molecular structure and versatile applications. Composed of glucose units linked by α-(1,4) glycosidic bonds, CDs possess a hydrophilic exterior and a hydrophobic internal cavity, enabling them to form inclusion complexes with a wide range of poorly water-soluble guest molecules. This encapsulation capability enhances the solubility, stability, dissolution rate, and bioavailability of drugs, making CDs highly valuable pharmaceutical excipients. Among the naturally occurring CDs α-, β-, and γ-CDs and numerous chemically modified derivatives such as hydroxypropyl-β-CD, methylated-β-CD, and sulfo-butylether-β-CD have been developed to improve their physicochemical and complexation properties. In addition to pharmaceuticals, CDs are widely utilized in cosmetics, food, textiles, and agricultural formulations due to their biocompatibility, biodegradability, and ability to mask unpleasant tastes and odors. Their structural flexibility also supports applications in nanotechnology, catalysis, and environmentally friendly “green polymerization” processes. Moreover, the review also focuses on molecular modelling and characterization of CD–drug inclusion complexes to better understand host–guest interactions and optimize controlled drug delivery systems. Overall, cyclodextrins act as multifunctional, eco-friendly carriers capable of improving the performance of diverse bioactive compounds. Their tunable chemistry and sustainable nature make them a bridge between fundamental molecular science and advanced industrial and biomedical technologies, reinforcing their status as indispensable tools in modern formulation and material design.</p> Graphical abstract <p></p>